Closing the doughnut hole

November 30, 2011

Medicare's prescription coverage gap is getting smaller this year for millions of older and disabled people with high drug costs.

The "doughnut hole" will shrink about 40 percent.

Medicare Part D helps older Americans pay for their prescription drugs, but there has long been a gap in coverage. Once a prescription cost enters a certain range, people have to pay out of pocket for their medications. That is called the doughnut hole.

Reforms were made to the program in 2010 and are now going into effect. People will now receive a major discount on their medicine.

The Centers for Medicare and Medicaid Services reported that Pennsylvanians will save more than $87 million or about $600 each.

This will save older Pennsylvanians money. In turn they may buy other things that will help boost the economy. This is a good change to the Medicare Part D program.